Question
If A earns Rs. 30,000, she spends 40% of it on rent and Rs.
3,000 on food, saving the remaining amount. Later, her income rises by 20%, while her rent increases by Rs. 500 and her food expenses rise by 10%. How much does A save after these changes?Solution
ATQ;
Amount initially spent by A on rent = 30,000 X 0.40 = Rs. 12,000
Increased amount spent on Rent = 12,000 + 500 = Rs. 12,500
Amount initially spent by A on food = Rs. 3,000
Increased amount spent on food = 3,000 X 1.10 = Rs. 3,300
Increased income of A = 30,000 X 1.20 = Rs. 36,000
So, new savings of A = 36,000 - (12,500 + 3,300) = Rs. 20,200
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